WASHINGTON (Reuters) - U.S. President Donald Trump said
on Monday Washington had struck trade agreements with Tokyo that could be
implemented without congressional approval, but stopped short of assuring Japan
that new tariffs would not be slapped on vital auto exports.

In a letter to the U.S. Congress released by the White
House, Trump said that he intends to enter into the agreements on tariff
barriers and digital trade “in the coming weeks” and was notifying lawmakers
that the tariff deal would be made under a trade law provision allowing the
U.S. president to make reciprocal tariff reductions by proclamation.

“In addition, I also will be entering into an Executive
Agreement with Japan regarding digital trade,” Trump said in the letter.

Neither agreement would require a vote in Congress under
the so-called “fast track” approval process. The Trump administration last year
notified Congress that it would pursue negotiations with Japan under this
method.

On a critical issue to Japan, Trump’s announcement left
unclear whether he has agreed not to impose threatened national security
tariffs on Japanese vehicles and auto parts. Avoiding the “Section 232” tariffs
of up to 25% was a major motivating factor for Tokyo in negotiating with
Washington on trade.

“At the finishing stage, we plan to reconfirm that 232
won’t be imposed,” Foreign Minister Toshimitsu Motegi, Japan’s lead negotiator,
told a regular news conference in Tokyo on Tuesday.

Finance Minister Taro Aso said the deal won’t contain any
provision on currencies - another worry for Tokyo. Japan wants to avoid any
agreement hindering its ability to intervene in the foreign-exchange markets in
the event of a spike in the yen, or to expand the Bank of Japan’s massive
monetary stimulus.

Trump said after the G7 summit last month that he was not
considering auto tariffs “at this moment”.

Over much of the past year, the scope of talks has
narrowed to exclude the automotive sector, the source of most of the $67
billion U.S. trade deficit with Japan.

Instead, Trump and Prime Minister Shinzo Abe in August
announced an agreement in principle of a deal that covered reductions in
tariffs on agricultural and industrial goods, but not autos.